Good day. Thank you for standing by. Welcome to the Bally's Corporation fourth quarter 2022 and year-end earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. In order to ask a question during this session, please press the star key followed by the number one on your telephone keypad. Please be advised that today's conference call is being recorded. If you require any further assistance, please press star then zero. I'd now like to turn the call over to Bobby Lavan, Chief Financial Officer for Bally's. Please go ahead. Thanks, operator. Good afternoon, and thank you for joining us on today's call. The earnings release and presentation accompanying this call are available in the investor relations section of our website at www.ballys.com. With me on today's call, our incoming Chief Executive Officer, Robeson Reeves, and George Papanier, Bally's President. Before we begin, we would like to remind everyone that comments made by management today will contain forward-looking statements. These forward-looking statements include plans, expectations, estimates, and projections that involve significant risks and uncertainties. These risks are discussed in the company's earnings release and SEC filings. Actual results may differ materially from the results discussed in these forward-looking statements. In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable GAAP financial measures are included in the schedules contained in our earnings release. We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project special charges within certain expenses. Today's call is also being broadcast live on our investor site and will be available for replay shortly after the completion of this call. Let me hand the call over to Robeson. Thanks, Bobby. I first want to thank Lee Fenton for his leadership over the past 14 years. We have a great working relationship and are great friends. He has been a wonderful mentor to me, and I've learned so much from him. We wouldn't be the global omni-channel leader we are today without him. I'm excited to be here and look forward to traveling to New York and other parts of the States to meet our investors in the coming months. We are three businesses that are coming together to be one. George and the team have done a great job on casinos and resorts. The portfolio's CapEx cycle has inflected in the cash generation at the properties while continuing to build a database for our interactive business is on track. We will execute on building the $1.7 billion Bally's Chicago, which will be game-changing for us in 2026. The temporary facility is on track to be open this year and will be the first test of the pent-up demand for gaming in Chicago. International Interactive started slow in the first quarter of 2022, but after the marketing and jackpot optimizations we executed, the U.K. business has been strong, growing 12% in the fourth quarter, well ahead of the market. Regulatory changes to the market in the U.K. are driving a new dynamic, with the smaller operators going away and the bigger operators gaining share, a trend I really believe will continue for the foreseeable future. In Asia, we added to the team recently, and we're already seeing the fruits of their labor with the business positive year-on-year in December and January. We will invest some of our higher earnings into growth opportunities in rest of Europe, rest of world, and Latin America. The first push will be this year. In January, we announced a restructuring in Interactive. The primary focus of this was North America, but we also saw this as an opportunity to streamline all of Interactive. Our technology development pipeline has been completely reworked, allowing for a more competitive and effective prioritization. Fewer dependencies amongst the teams have also reduced complexity. With 1,000+ developers, me and my team having a tight grip on priorities is how we'll move faster and deliver near and long-term results to investors. In North America, our upward trajectory on iCasino continues. Our business in New Jersey has started to accelerate further with new payment methods and other options across Ontario and other markets too. Ontario trends look very, very similar. We plan to launch in Pennsylvania in the first half of 2023 and will continue to be iCasino first. On sports, we recognize that the Bet.Works acquisition did not give us the platform required to develop a competitive product. We didn't react fast enough there. This will not happen again. We are confident there are more economical and nimble solutions out there and have spent the past five months analyzing them deeply. Sports for us is an acquisition tool. It can drive further engagement for the Bally's brand. When we approach the choice of technology, we'll make sure we have that mindset. Many of you will be wondering how I'll lead the business. You should expect me to follow the data. I will be analytical in our approach to decision-making to deliver customer-centric, profitable solutions. I believe that the most valuable asset to deploy is focus. I will focus on opportunities with scale and go after them harder. As a company, we will prioritize the opening of the Chicago Temp on time and on budget. Growing North America interactive in a profitable way, our omni-channel data capabilities, sports for markets outside of North America, and taking Bally's global. I'm gonna hand over to Bobby. Thanks, Robeson. Moving to the segment details. Casinos and resorts reported $96 million of EBITDAR in the quarter. This includes negative $4.7 million of EBITDAR for AC. Excluding AC and Tropicana, which are lower margin properties, EBITDAR margins were 36%+ for the core portfolio, which included $2 million of workers' comp charges in the quarter, in line with our forecast for the property to be a portfolio of high 30s. International Interactive had approximately $89 million of EBITDA at a 39% margin. The UK was +12% year-over-year on a constant currency basis, and International was up 6%. Incrementals were driven by revenue streams in a pullback on lower return marketing, with CPA costs up in the UK due to the World Cup. We will invest some of these record margins into the business, including some new markets, where we are resetting our long-term expectations for EBITDA margins on the International Interactive to be greater than 30%. North America Interactive had $6 million of negative EBITDA. In 2023, we will have significant cost saves from our restructuring, partially offset by higher access fees and a new streaming portfolio with a sports league with a large audience. We have updated our 2023 financial forecast to reflect current FX rates, the reset in North America Interactive, and actual results through the beginning of the year. At current FX rates, we expect revenues to be $2.5 billion-$2.6 billion and adjusted EBITDA to be $660 million-$700 million, including $40 million-$50 million of North America Interactive EBITDA losses. We continue to focus on profitability and cutting costs, and we continue to streamline capital expenditures, which we expect to be about $170 million, which includes software development costs of approximately $40 million-$45 million. Common shares outstanding are $47 million, and we have incremental warrants, options and other dilution of $13 million, which gets us to about $59.3 million shares outstanding. We closed the Tiverton Biloxi sale on January 3rd of this year. Pro forma for that transaction, we have more than $400 million of cash on our balance sheet and $3 billion of net debt. We have ample liquidity to fund all of our announced projects, and we'll invest with care in North America Interactive. Our long-term commitment is to be sub 5x debt to EBITDA, which we expect to hit in mid 2024. With that, I'll now open it up to Q&A. Operator? Certainly. At this time, if you would like to ask a question, please press star one on your touchtone phone. You may withdraw your question at any time by pressing star two. Again, that is star and one. We will take our first question from Daniel Politzer with Wells Fargo. Please go ahead. Hi, this is Zach Silverberg, for Dan. Just a couple from me. One, can you talk about the success you've had recently in the U.K.? Sort of what has made you successful? Was it the marketing, the product, et cetera? Any sort of commentary would be great. Thank you. Well, some operators are leaving the market, there is consolidation happening. We're also taking share by targeting more effectively with our really high-quality Martech stack. We're seeing very solid spends from customers with great visit frequency. We see this is very robust revenues, we're gaining traffic by people leaving the market. Thanks. Appreciate that. Just one more. Do you guys have any update or expectations or commentary for a New York casino? Just remind us of the rationale to pursue this or just to throw your hat in the ring? Thank you. I'm gonna hand over to George. Thanks, Robeson. Hi, Zach. Yeah, so listen, you know, it's a public process that we're participating in, the RFA process. Obviously we see huge potential in that market. The process is moving relatively quickly and you know we could put together a great bid, especially just coming off of the Chicago bid. You know, we're looking currently at a two-side approach. It worked well for us in Chicago, so it's something that we may be duplicating in this process. We're not gonna get into any specific strategy at this point in time. Obviously we see the potential of the market. Thank you. Okay. We'll take our next question from Jeff Stantial with Stifel. Please go ahead. Hey, good afternoon, everyone. Let me just start off by saying, Robeson, congratulations on the new role. Really looking forward to working together more closely here. Lee, best of luck on your next endeavor. Starting off here, you know, one for you, Robeson, maybe on the international interactive business. Japan looks to be hitting a bit of an inflection point after a couple difficult quarters. Could you just sort of update us on some of the headwinds you've been experiencing in that market, whether it's FX, tough reopening comps, general consumer malaise, competition, what have you. Maybe provide some context for how you factor these into your 2023 guidance? In Japan we saw a degree of sentiment, slow, new traffic to the market. We see this coming back to us now. We have maintained share and actually increased our share in the market. I feel very positive that we've got a good control of our margins there. They have improved somewhat, and I don't see that changing. I have high hopes for Japan. I think it's a fantastic market with huge potential. Okay, great. That's helpful. Thank you. Then for my follow-up, switching to the brick-and-mortar side of things. Slide nine of the presentation, you lay out some year-over-year growth rates in 2022 for daily CO by age cohort. Two questions here. First, I just wanna be clear, is this a same-store calculation, or are there mix issues to consider? Then second, the age trends seem to be perhaps a bit counterintuitive given what was perceived to be some pull forward demand or maybe rather wallet share tailwinds is the better term for the younger demographic during that initial reopening phase. You know, George, can you maybe just talk a bit more to what you see driving these differences in growth rates by age cohort and maybe just anecdotally what you've observed more in the late. Yeah 2022 into 2021 type timeframe? Sure. First of all, we've seen growth in unique customers. We've seen growth in the higher demographic customer, which accounts for the size or the increase in the wallet size. We feel good about that. You know, as far as what you're referring to, you know, the unique thing that's happened is since COVID, you know, we've seen the 65+ customer, you know, not responding as quickly as pre-COVID 2019. At the same time, we've focused on a little bit more strategy geared towards the table game customer. That tends to skew our demographic younger. A lot of our revenue growth has been in markets where we've taken opportunities to kind of reenter the table games market. That was primarily as a result of a lot of the acquisitions that we've seen recently that we that we put into our portfolio really as a as a a strategy decided to start to get out of table games. You know, our philosophy is a little bit different, that we focus heavily on the table games market. We've seen a lot of success, which accounts for a lot of our growth in our newer assets that we've acquired. Also we're focused a little bit more on the Asian demographic. Great. That's very helpful. Thank you both. I'll pass it on. We'll take our next question from Barry Jonas with Truist Securities. Please go ahead. Oh, great. Thank you. Congratulations, Robeson. You know, just to start, I'm curious what you see as some of the major differences and similarities in your approach, versus Lee's. Great question. I feel that this is the time to really drive the data further, so I'll play to my strengths. My strengths, as I've said, are in data. They're in being highly analytical and making sure that we're leveraging all of our technology across our assets. And really just when we make a change, hitting it hard. We'll make very, very smart but aggressive bets and push exceptionally hard there. That will be my focus. I wanna speak with our revenues and our numbers, and then we can drive the business forward into the long term. Great. Then, you know, just wanted to follow up on North America Interactive. I believe the deck shows you potentially hitting profitability by 2024. It looks like somewhere around $25 million-ish or so. Just curious if you can kinda share any assumptions for, you know, how you get there. Thanks. As we've described, we've got some real bright spots in iCasino. Bally Casino, New Jersey, perfect example for us, launched just over 12 months ago. It is now at $4 million of GGR per month. It continues to grow, and it will continue to grow beyond that. We are live in Ontario. We're seeing very similar trends there, and we'll be live in Pennsylvania in the half. Play to our strengths in iCasino, but we're in it for the absolute long haul, but we're not gonna make the same mistakes we made previously. We're looking at options to do it in the most profitable way. We are considering lease options because we don't think you need to own now. What's great about that is that all the costs are directly correlated with revenues. We're gonna take a very smart approach, and we're gonna play to our strengths, and we know that we are fantastic in iCasino. Everything you can see in our business shows that. Perfect. Thank you so much, and congratulations. Thank you. We'll take our next question from Brandt Montour with Barclays. Please go ahead. Hey, good evening, everybody. Thanks for taking the questions. Echo everybody's sentiments about congratulations all around. I was maybe hoping to start with iGaming. Looking at a slide in your deck, which shows this really great growth in deposits, and we're not, you know, you're not necessarily seeing a like for like growth in play. Just curious, you know, what you see as a usual lag, if that's a typical dynamic in the market, in other markets that you've been in a longer. You know, is there a missing piece that, you know, you just need to sort of convert that a little faster? Yeah, help us understand that cadence. Yeah, there is a general lag to where deposits convert directly into your revenues. You have to firstly get people to build trust in your proposition. people bring money, they withdraw money. Once they realize that you're as trustworthy as a bank, they will keep their money there, and they will spend all the money with you. what you'll see with us is that our hold percentage will grow over time. I truly believe that we will continue that trend, but we have had some big winners. The big winners in Jan, we will see these trends change and smooth over time. Okay. Thanks for that. Maybe just a near-term question on the retail side of things. you know, what you can tell us you're seeing in traffic in the casinos in terms of, different behavior across the database at the high end of the database, low end of the database, rated versus unrated. Any interesting changes you might be seeing, would be helpful. Thank you. Sure. What we're seeing in database other than kind of a little bit of a shift in the age demographics skewing a little bit younger, primarily for our markets, you know, we're starting to see lower, kinda little bit lower in transient play. That speaks towards the rated versus non-rated type play. But part of our focus is on non-cash segments of our business, so I think that's starting to skew our database a little bit toward, more towards a higher frequency of non-rated play that comes to our properties. That's primarily they come for our hotels, F&B and other non-gaming activities. We're starting to kinda see that start to proliferate through our portfolio. I think a big part of the reset from COVID deals with the fact that we pulled out a lot of the more of the promotional programming. I consider buffets to be part of that promotional programming, certain other entertainment. You're starting to see a little bit of a shift away from that lower demographic, and we're more focused on providing the amenities that the higher end customers want and that's starting to not only skew visitation to the upside, but also the size of the wallet. Okay. Thanks for all the color. We'll take our next question from David Katz with Jefferies. Please go ahead. Hi. Good afternoon, everyone. Congrats. Good evening and all that. I wanted to ask about the slide that you have in your deck on the trop in Las Vegas. I would love some more interesting color. It's a topic that's been, you know, discussed on and off for, you know, for a number of years and just what you might be envisioning in terms of, you know, scale of dollars or partnerships or, you know, any further thoughts would be interesting, please. Jeff, George. Hey, David. Yeah. Listen, first. Hey First, you know, we've used Las Vegas as a necessity since we were a national company. We are a national company, and we added the Bally's brand to help us to help us provide that to the customer. You know, we bought what we would define as a long-term option, certainly at a very good price. We could flip it for a really good return if we wanted to. We can run it long term, and it pays for itself. You know, we're a very disciplined company. I think you've heard that in other earnings calls previously. Well, for one thing for sure is we're not interested in duplicating other people's mistakes and, you know, we have a long-term opportunity view on this investment, and we're gonna be patient about looking for the right project, with the appropriate return, for that market. You may have heard in the press that, you know, we've been having discussions with the A's. They've been having discussions with other, with focus on other sites as well. There could be some potential there. Again, anything we do is gonna be something that we have the appropriate return on. Okie doke. Thank you very much. We'll take our next question from Ricardo Chinchilla with Deutsche Bank. Please go ahead. Hey, guys. congratulations and thank you so much for taking the questions. My first question is a housekeeping question. Could you please provide us with the EBITDA and leverage you report to Rhode Island? My second question is regarding the proceeds from the sale leaseback transaction. In the press release, you mentioned that the company expect to use a significant portion for the repayment. I see that you have around $400 million of cash pro forma on the balance sheet as you disclosed on the slides. could you please provide some color if you are doing any further pay down on the term loan, or what are your plans for some of that, cash? Hey, Ricardo. You know, we're not gonna comment on our capital markets activities. We're always looking at what's the best return for the company. The leverage from a Rhode Island perspective is 5.3x, or the EBITDA was $670 million. Perfect. Thank you. We'll take our next question from Lance Vitanza with Cowen. Please go ahead. Hi, this is Jonathan on for Lance. My first question is, can you share any insight into the consumer strength in January and in February? Yeah, sure. In interactive across the board, we're seeing really solid spend. We're not seeing any strain there at all. Our projections have been pretty prudent here. If the current trends continue, I expect to see upside to our revenue performance. We're not seeing anything yet, and there's no signs of it. Got it. George, you wanna touch on anything in retail? Sure. Well, I could add that business is strong and that our issue is, that it's still a tight labor market, and it's hard to fill jobs to support demand. Got it. With that in mind then, can we expect that wage you might see some increase in wages for, you know, for the remainder of the year? There's certainly gonna be continued upward pressure on that. The jobs that we're hiring are variable jobs, so it gives us the opportunity to control that. Understood based on demand. Got it. Can you maybe dig a little bit deeper into what's going on in Asia? I know there from the preliminary results, it seems that there's going to be some growth there. Could you maybe share some give us some update on the region? Yeah. Performance in Asia is solid. We continue to grow the player base. We are seeing really, really positive trends. Like, the ARPUs are strong, the visits are very high. There's nothing which makes me concerned about our growth trajectory in Asia, I can see our margins improving there, as well as the revenues continuing to improve. Okay. The last one from me. There's a slide in the presentation where there's it lists out the remaining properties. Just wondering, is there still appetite to have more sales, leaseback? Could this maybe be a potential use of financing should Bally's be awarded the license in New York? Yes. I mean, we will always view our land bank as a tool to continue to grow EBITDA for the business. It just has to be the right deal. Okay. It's not that you guys are complacent right now. It's on the table, but no immediate plans for it? Yeah, I mean, we're comfortable with Chicago funding at this point, so we wouldn't go and tap the land bank unless it's for another project or M&A opportunity. Understood. Thank you. Once again, that's star one for your questions. We'll go next to Chad Beynon with Macquarie. Please go ahead. Hey, this is Aaron on for Chad. Thanks for taking my question. Thanks for all the color on your cohorts and the demographics. I'm curious, within your guidance, can you help us think about what type of a consumer you're expecting in the back half of the year? If we hold trends of where we are today with the consumer, we would be above our guidance. We are expecting some weakness, and we've been preparing for that. To, you know, we're feeling good right now. We are expecting a pullback starting in the second quarter. Got it. Thank you. As a follow-up, wanted to touch quickly on the trop. Just given what's going on with macro, has there been any change in terms of your outlook there? Thank you. Well, yeah, our focus is certainly on the opening of the temporary. There really has not been any, you know, noticeable or mentionable slide in schedule. We're looking to open summer of 2023. The good part about the process is that the city's accelerated all the approvals, and there's no more approvals required. Got it. Thank you. We will go next to Jordan Bender with JMP Securities. Please go ahead. Great. Thanks. As you look to grow the Games business on both the iGaming and sports betting side of the business, can you maybe talk about the opportunities to expand outside your current geographies? There's an emerging opportunity in South America. Just seeing if, you have any interest there. Yeah. Thank you, Jordan. We absolutely are looking at expansion into South America. I find the Brazilian market one of interest. I would like, and we will very much so, push the Bally's brand as hard as possible there. We think that it will get cut through and be very effective in the Brazil market. I think it has huge potential and will be a strong pillar for us. Great. Thanks. For my follow-up, going to Vegas, are you seeing any uplift between, you know, the regional database and the Las Vegas database and being able to cross-sell people, in and out of Vegas? Thanks. Well, you know, we just effectively acquired the asset. Yeah, there is definitely cross-marketing opportunities. Certainly the customers in our regional markets are very interested in any Las Vegas visitation. You know, we've also have Lake Tahoe in our portfolio and as well as Atlantic City. We consider cross-marketing opportunity to some extent with Luxy. Yeah, we get some nice benefit in cross-marketing those properties. Great. Thanks, George, and congrats, everybody. There are no further questions at this time. I'll turn the call back over to the speakers for closing remarks. Well, thank you all for hearing from us. You'll hear from us again very soon. Good luck. Thank you, this does conclude today's program. Thank you for your participation. You may disconnect.